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Newly-Filed Case Raises War and Terrorism Issues

Blogs, Insurance Coverage

Universal Cable Productions LLC v. Atlantic Specialty Insurance Company, U.S.D.C., C.D.Ca., No. 2:16-cv-04435-PA-MRW (filed June 20, 2016) involves a television series that began filming in Israel in the summer of 2014. After the first episode was completed, rocket attacks by Hamas required the filming to be moved to other countries. The production company sought $6.9 million in “extra expenses” under its Motion Picture/Television Producers Portfolio Policy. The insurer denied coverage under the War Exclusion, which barred coverage for, among other things, “war … warlike action … or insurrection, rebellion, revolution, usurped power, or any action taken by a governmental authority in hindering or defending against any of these.” The production company asserts that the activity constituted Terrorism and that Terrorism was not excluded under the Policy. If the case proceeds to a decision, it could provide valuable guidance on coverage under numerous lines of business.